-Refer to Table 3

question 41

Multiple Choice

-Refer to Table 3.4. At a price of $45,

• A) we would expect the price to rise because of a shortage equal to 350 units.
• B) we would expect the amount purchased to fall because of a surplus equal to 350 units.
• C) none of the commodity is demanded.
• D) we would expect the price to fall because of a shortage equal to 350 units.
• E) 350 units of the commodity are supplied.

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Definitions:

Fixed Cost

Expenses that do not change in total over a wide range of activity levels or over the short term, such as rent or salaries.

Special Order

is an order that is outside of a company’s normal production schedule and often requires unique specifications or pricing.

Vertically Integrated

A company structure where the company controls multiple stages of production, distribution, or both within the same industry.

Entire Value Chain

The full range of activities involved in designing, producing, marketing, and selling a product or service, from initial concept to delivery to the end user.